Bovis sees profits slump

26-08-2008

Bovis sees profits slump
A slump in the UK property market has seen profits at Bovis slip dramatically.

The homebuilder reveals it half year results today and confirms profits have fallen 84 per cent over the first six months, in what is described as "the toughest period of trading" the firm has experienced in its time as a public company.

While Bovis made £11.7 million in adjusted profit before tax in the first half of the year, this is down from £58.4 million in the same period last year.

In response Bovis has largely avoided new investments in consented land, reduced production levels and restructured to cut operating costs.

Commenting on the figures David Ritchie, chief executive of Bovis Homes, said: "The group considers that the current difficult trading environment will continue for the foreseeable future with continued poor mortgage liquidity limiting housing market activity.

"Actions continue to be taken to conserve cash and a realistic approach is being taken in respect of achievable net prices for the group's available homes to facilitate delivery of required volumes for the remainder of 2008," he added.

The average sale price of the company's homes has fallen by four per cent over the period. As such Bovis now sells its homes for an average of £196,700.

Earlier this year Bovis confirmed around 400 jobs are to be axed, along with the closure of its eastern regional office, with fewer subcontractors being taken on at its building sites.

Shareholders will receive a dividend of five pence a share, down from the 20 pence generated last year.

In response shares in Bovis fell 2.8 per cent to 416 pence at 08:52 BST this morning.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Automotive
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
HR / Recruitment
Health / Beauty
Hotel / Catering / Restaurants
IT / Internet
Insurance / Pensions
International / Overseas
Legal
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Telecommunications
Transport / Logistics
Travel / Tourism / Leisure